Entrepreneurship Foundations and Strategy

Differentiation strategy: Kossowski in 2007 made a statement that says "Differentiation strategy is refers to an approach that leads to development of good or service having some special attributes that are different to those that are present in the market. Customers must see these unique characteristics that point out value and differentiates the good or service from other products. The customers must also see them as the best choice in relation to other similar products in market. This differentiation strategy has helped a lot in terms of competition. For instance, the simple Bank has managed to lead ahead of the Bank of America with the help of Differentiation strategy in terms of competition and customer base.

Sustainable Competitive Advantage: McGrath (2013) notes sustainable competitive advantage as observed in many organizations serves to drive an organization to acquire variety of combined attributes. The acquired attributes, thus, serve to place the organization, company, or business in a position that it outperforms the other potential and actual competitors. For example, Apple Company has managed to stay put at the top in mobile technology by having access to highly trained as well as skilled human resources that are creative and innovative.

Disintermediation: Mundhra (2009) defines disintermediation as the elimination of financial intermediaries between the business and the retailers. For example, certain businesses prefer to delete intermediaries such as bankers and brokers from their supply chain. Disintermediation often becomes necessary whenever businesses have to match up with the effects of inflations. Nonetheless, disintermediation serves to decrease the higher costs that are often transferred to the customers. One disadvantage of intermediation is the increased cost of marketing strategies.

Tagline: According to Bautista (1998), tagline denotes the use of catchy phrases that are able to appeal to the consumers at a glance. It is such phrases that businesses us to advertise their products and services. Tagline is of interest to all businesses that need to do well since the phrases have within them the messages and slogans that the business would like to stick in the mind of the customers both potential and actual. For example, NIKE-“Just do it.”

Case Study

Strength of the Business Idea

The extent to which the idea takes advantage of the trend in the environment is very strong. The idea comes in when there is a gap created by the need to find best fitting men’s underwear hence able to solve the identified problem. The entry of the business ides is very timely in that it comes when there is really need to address the clothing problem that men are facing. According to Ferrell, and Hartline, (2014), timing is a factor that is integral as far as marketing is concerned. Nonetheless, the idea adds value to the buyer buy being able to address the challenge that men face while tucking in their undershirts as well bunching up. Since the idea is able to create a product that meet the expectation of men, they are highly satisfied considering that they only have to make small change to adapt to the product stemming from the ides.

Industry Related Ideas

Competition according to Ferrell, and Hartline (2014), is an external factor that every business has to face in the same manner that Patterson faces many competitive companies that also produce men’s undershirts. The stage in the industry life is both in the emergence and growth phase. The business furthermore has a strong growth rate. The product produced from Patterson’s idea is of ambient importance and has a higher industry operation margin as indicated by its ability to sell over 60% of its product, which were twice the sales of known brands.

Target Market and Customer-Related Issues.

The business succinctly did well and conducting its pre and actual visibility studies leading to identification of the larger customer base that it is able to enjoy. However, it is unable to create entry barrier for other potential competitors. Purchase power of the customers is very high as exemplified by the request of customers to have women’s underpants brand. The business enjoys the ease of making its product known through satisfied consumer’s recommendations. Finally, the business has a potential of growing by taking advantage to produce women’s undershirts and other related products, which is though well presented.

Reference

Bautista, J. (1998). Bags, Boxes [and] Tags: The Best of Graphic Design for Shopping Bags [and] more. Gloucester (Massachusetts: Rockport Publishers.

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases. Mason, OH: South-Western/Cengage Learning.

Kossowski, A. (2007). Strategic management: Porter's model of generic competitive strategies - theory and analysis. München: GRIN Verlag GmbH.

McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Boston, Mass: Harvard Business Review Press.

Mundhra, G. D. (2009). Disintermediation and reintermediation in the low cost carrier airline industry in India: A multiple case study.